Must I pay taxes even if I live abroad (and have done so for a very long time)?

Question

I was born in USA, and I was like in USA in 1 year, then we moved to the place where my parents are from. So I have never really lived in USA. However, I have heard that Americans abroad must pay taxes to the US State, is that true? Even if I am a multi-citizen? And never lived in USA?

How is it? Thanks so much for answers.

I have never owned any US possesion, neither have I got any income in USA or payed any taxes. I am just an US citizen living in another country. Does it mean that I must pay the foreign's country's tax plus an US tax? Seems very odd to when I have never really lived there.

Answer 1

If you were born in the US, and you have not FORMALLY renounced your US citizenship, you are legally still a US citizen. Under US law, all worldwide income of US citizens is subject to US tax law. That does not necessarily mean you owe US income tax. There are exemptions for foreign earned income. I don't pretend to know the actual rules. The IRS publication linked below is titled Tax Guide for U.S. Citizens and Resident Aliens Abroad. You could also contact the nearest US embassy for more information. The IRS has representatives located in some embassies.

Answer 2

You may be eligible for a foreign income exclusion if you live and work in a foreign country for 330 days or more in one year

To be eligible to claim the foreign earned income exclusion or the foreign housing exclusion, you must have a tax home in a foreign country and meet either the bona fide residence test or the physical presence test.

The bona fide residence test can be used by United States citizens; and by United States resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty with an applicable nondiscrimination clause. You must be a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. The characteristics which qualify you as a bona fide resident usually include establishing a home and settling in that country with some degree of permanence. An individual is not a bona fide resident of a foreign country if, the individual claims to be a nonresident to the authorities of the foreign country and his/her earned income is not subject to tax in the foreign country because the individual is considered a nonresident in the foreign country.

The physical presence test can be used by any United States citizen or resident alien. You must be physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. The 12–month period can begin with any day of any calendar month.

If you violate U.S. restrictions that prohibit travel to certain countries, you will not be able to count your presence or residence in those countries in meeting the bona fide residence test or the physical presence test.

Generally, your tax home is the general area of your main place of business or post of duty, regardless of where you maintain your family home. If you do not have a regular or main place of business because of the nature of your work, then your tax home may be the place where you regularly live. You are not considered to have a tax home in a foreign country for any period for which your household is in the United States. However, if you are temporarily present in the United States on vacation or for your employment, it does not necessarily mean that your household is in the United States during that time.

Answer 3

US citizens are required to file and pay taxes on their world wide income. However it is very unlikely that the IRS even knows about you if you have never filed a return. The people that get in trouble are those that live here and move to France or someplace to avoid US tax.

Answer 4

If you maintain US citizenship, you are required to file a US tax return. If you live abroad and pay applicable foreign taxes, the taxes you pay to most foreign nations count toward your US tax obligation.

Your best bet is to speak to a tax advisor with experience in international tax law. There are different 'credits' that you get depending on what country you're paying taxes into and what their diplomatic relationship with the US is at present.

Answer 5

Federal Reserve - many authorities operations are privatized. in my opinion more advantageous should be, as deepest companies are a lot more advantageous fiscally in charge. American Indians - they are not all useless now. I recommend you perform a touch interpreting, see how lengthy it took for them to be allowed to vote. The Europeans, etc wanted to have their cake and devour it too. My husband is area of the Cherokee u . s .. we've in no way lived on a reservation yet we've been there. facilities are extremely constrained as they are not placed "downtown" or perhaps close to to a city mainly. They get poorly knowledgeable and characteristic few possibilities. Immigration - oh geez. My grandfather emigrated the following from Italy in 1920. After 3 visits he became ultimately allowed to deliver his kin. They spoke Italian at domicile. at the same time as they stepped outdoors they were envisioned to communicate English. My mom and her 2 sisters misplaced even their accents, merely the oldest son in no way did. I genuinely haven't any mission with immigration. I genuinely have intense themes with illegals and with each and every thing being in Spanish. I stay in Texas :/ gay marriage - i have been married to my husband 19 years. each and every gay man or woman in the U. S. ought to get married the following day and that would have 0 impact on my marriage. What all the fuss is about sick in no way comprehend. enable them have at it I say. Affirmative action - i am going to have self assurance in it after I see a fund to assist white men grow to be millionaire rappers with a sixth grade practise. drugs - to my concepts, it really is like the mafia. enable all of them kill themselves, who cares? Murderes - back, I stay in TX. we've an exhibit lane.

Answer 6

You should check out the IRS website at www.irs.gov. Since you haven't lived in the US for quite a while, you should be okay as long as you have no income derived from within the United States and/or its possessions.